Swiggy, one of India’s leading food delivery platforms, has come under scrutiny for promoting Yolo247, an offshore betting website, despite explicit government regulations prohibiting the endorsement of such platforms. The Ministry of Information and Broadcasting has repeatedly cautioned endorsers to refrain from promoting gambling and betting platforms due to their financial and socioeconomic risks, particularly for the youth. Critics argue that Swiggy’s association with Yolo247 reflects either negligence or disregard for legal and ethical standards. This controversy highlights the potential legal and societal ramifications for businesses involved in similar endorsements.

Government’s Clear Warning Against Online Gambling Endorsements

Strict advisory issued to all endorsers:

The Ministry of Information and Broadcasting has warned against promoting online betting platforms, highlighting the dangers of financial losses and addiction, especially for young consumers.
Celebrities, influencers, and companies endorsing such platforms risk facing legal consequences under the Consumer Protection Act, 2019, and the IT Act, 2000.
Potential penalties for violations:

Non-compliance may result in the removal of social media posts, disabling of accounts, and even penal proceedings.
Platforms that fail to take corrective action could lose their intermediary immunity, as outlined in Section 79 of the IT Act.

Past Warnings Reinforced by the CCPA

Surrogate advertising under scrutiny:

The Central Consumer Protection Authority (CCPA) has emphasized its vigilance in identifying and addressing surrogate advertisements for betting platforms.
Celebrities and influencers were explicitly warned about endorsing betting platforms, with the CCPA reinforcing the government’s commitment to curbing online gambling activities.
High-profile violations set a precedent:

Despite such warnings, platforms like Fairplay have used celebrity endorsements from figures like Badshah and Jacqueline Fernandez to gain traction.

Swiggy’s Controversial Promotion of Yolo247

Allegations of disregard for legal advisories:

Swiggy’s promotion of Yolo247 appears to contravene the government’s guidelines, raising questions about the company’s commitment to ethical business practices.
Critics argue this association reflects either insufficient due diligence or deliberate indifference to societal responsibilities.
Impact on Swiggy’s reputation and trust:

With a massive user base, including impressionable young consumers, Swiggy’s actions could inadvertently normalize gambling activities, potentially exacerbating financial distress and addiction.

Legal and Societal Implications

Potential legal repercussions for Swiggy:

The company could face punitive measures under the Consumer Protection Act, 2019, and IT Act, 2000, including monetary penalties and operational restrictions.
Failing to comply with regulatory advisories might place Swiggy under intense scrutiny, jeopardizing its standing as a trusted platform.
Ethical considerations and public trust:

As a major digital platform, Swiggy is expected to operate within the framework of national laws and refrain from promoting entities operating in legally ambiguous territories.
The promotion of Yolo247 could erode public trust, particularly among consumers who value socially responsible corporate behavior.